Beraki v. Crescent Hotels and Resorts Employer of Employees at Ven Embassy Row Hotel

District Court, District of Columbia·Decided April 5, 2022·No. Civil Action No. 2021-1113·Published

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

TEDROSE BERAKI, :

:

Plaintiff, : Civil Action No.: 21-1113 (RC)

:

v. : Re Document No.: 12 :

CRESCENT HOTELS AND RESORTS and : UNITE HERE LOCAL 25, :

:

Defendants. :

MEMORANDUM OPINION1

GRANTING DEFENDANT UNITE HERE LOCAL 25’S MOTION TO DISMISS PLAINTIFF’S AMENDED COMPLAINT

I. INTRODUCTION

Unite Here Local 25 (“Defendant” or “the Union”) asks the Court to dismiss each of Tedrose Beraki’s (“Plaintiff”) claims for failure to state a claim. Plaintiff asserts the following four claims against the Union: (1) age discrimination under the Age Discrimination in Employment Act, 29 U.S.C. §§ 623, 626; (2) violation of the Union’s duty of fair representation; (3) vacatur of an arbitration award under the Federal Arbitration Act; and (4) violation of 29 U.S.C. § 411(a)(5), the Labor Management Reporting and Disclosure Act. The Court grants the Union’s motion to dismiss.

1 The Court acknowledges that the motion resolved in this opinion was brought only by Unite Here Local 25 (“Defendant” or “the Union”) without being joined by Crescent Hotels and Resorts (“the Hotel”), another named defendant in this action. The Hotel has not yet appeared regarding this matter. Mot. Dismiss at 1 n.1.

II. FACTUAL AND PROCEDURAL BACKGROUND Beraki was employed as a bellman at Crescent Hotels and Resorts beginning August 25, 2018. Def.’s Supp. Mot. Dismiss Am. Compl. (“Mot. Dismiss”) at 1, 3, ECF No. 12-1; Pl.’s Am. Mot. (“Am. Compl.”) ¶ 21, ECF No. 8. The other defendant in this case, the Union, is a labor union that represents hospitality workers, including employees of the Hotel. Mot. Dismiss at 1. A major responsibility of the Union is to “negotiate[] a collective bargaining agreement (‘CBA’) with the Hotel setting wages, benefits, work rules, and other conditions of employment.” Id. The Union enforces terms of the CBA through contractual grievances and arbitration procedures. Id.; see also Def.’s Supp. Mot. Dismiss Original Compl. Ex. A (“Arbitration Award”) at 5, ECF No. 4-3; Def.’s Supp. Mot. Dismiss Original Compl. Ex. B (“Collective Bargaining Agreement”) at 37–40, ECF No. 4-4.2 In March 2019, Beraki applied and interviewed for a front desk position at the Hotel; he was subsequently denied the position in July 2019 when it was awarded to an outside applicant. Mot. Dismiss at 3; Am. Compl. ¶¶ 26–28, 37, 41. On August 8, 2019, Beraki sent a letter to the Union detailing CBA violations he believed the Hotel had committed in relation to his rejected application. Mot. Dismiss at 3–4; Am. Compl. ¶ 48. On September 25, 2019, the Hotel terminated Beraki’s employment for “insubordination, creating a hostile work environment, and

2 The Union filed two separate motions to dismiss. The first was a motion to dismiss the original complaint. Def.’s Supp. Mot. Dismiss Original Compl., ECF No. 4-1. The second was a motion to dismiss the amended complaint. Mot. Dismiss. The Court denied the original motion to dismiss (ECF No. 4-1) as moot. Min. Order of Mar. 31, 2022. Therefore, the Court resolves claims raised only in ECF No. 12-1, the motion to dismiss the amended complaint, and not claims raised only in ECF No. 4-1, the motion to dismiss the original complaint. Additionally, “[t]o avoid duplication of exhibits on the docket, [the Court] will cite to the docket numbers of the exhibits already filed with [the Union’s] original motion to dismiss where possible.” Mot. Dismiss at 3 n.2.

demonstrating a pattern of refusal to follow the Hotel’s policies and procedures.” Mot. Dismiss at 4 (cleaned up); Arbitration Award at 35–36; Am. Compl. ¶ 68.

On Beraki’s behalf, the Union filed two grievances in connection with his employment at the Hotel. Mot. Dismiss at 1. One was related to the Hotel’s termination of Beraki’s employment in September 2019; in it, the Union grieved “that absent any prior formal discipline, the [Hotel] lacked just cause to terminate [Beraki.]” Mot. Dismiss at 1, 4; see also Arbitration Award at 36–37. The other grievance contended that Beraki should have been awarded a vacant front desk agent position because he was the senior bidder. Mot. Dismiss at 1; Am. Compl. Exs. 23–24 at 155–56, ECF No. 11. The Union presented the case to a neutral arbitrator. Mot. Dismiss at 1.

The Union succeeded in obtaining an arbitration decision to reinstate Beraki to his previous position with full back pay and seniority rights, and the Union also succeeded in the promotion grievance by securing a front desk agent position for Beraki. Id. On September 30, 2020, the Arbitrator required Plaintiff to execute a Last Chance Agreement (“LCA”) “to be prepared jointly by the representatives of the Hotel and the Union.” Mot. Dismiss at 6; Arbitration Award at 38, 47 (citation omitted); Am. Compl. ¶ 75. The Arbitrator made clear in his order that Plaintiff’s violation of the LCA could subject Plaintiff to immediate termination. Mot. Dismiss at 6; Arbitration Award at 38, 47; Am. Compl. ¶ 75. But Beraki refused to settle because he did not accept the terms outlined in the Arbitrator’s LCA, which would have allowed the Hotel to immediately terminate Beraki for any violation of the LCA. Mot. Dismiss at 6; Arbitration Award at 38, 47; Am. Compl. ¶ 75.

Over several months following the Arbitrator’s decision, “the Union [negotiated] with the [Hotel] over the LCA mandated by the arbitration award so that [Beraki] could be reinstated to

his employment.” Mot. Dismiss at 6; Am. Compl. ¶¶ 77–81. Beraki told the Union’s General Counsel that “he would not sign the LCA because ‘there’s you, know, things I don’t agree [with.]’”3 Mot. Dismiss at 6; Am. Compl. Ex. 25 at 162, ECF No. 11. However, the Union’s General Counsel explained to Beraki that they “got everything we could have possibly wanted out of it, all the backpay, the retro seniority. You’re getting the position. When they tried to maneuver and not give you as much backpay, we beat the crap out of them on that, got every penny.” Mot. Dismiss at 7 (internal quotation marks omitted); Am. Compl. Ex. 27 at 166, ECF No. 11. Beyond this, the Union also succeeded in negotiating “the removal of a clause from the LCA that could have allowed the Hotel to terminate Plaintiff for lack of work.” Mot. Dismiss at 7; Am. Compl. Ex. 27 at 169, ECF No. 11.

Although the Union was successful in supporting Beraki’s reinstatement and promotion grievances, Beraki filed a lawsuit asserting the following four claims against the Union: (1) age discrimination under the Age Discrimination in Employment Act; (2) violation of the Union’s duty of fair representation; (3) vacatur of an arbitration award under the Federal Arbitration Act; and (4) violation of 29 U.S.C. § 411(a)(5), the Labor Management Reporting and Disclosure Act. Mot. Dismiss; Am. Compl. The Union moves to dismiss all of Plaintiff’s claims. Mot. Dismiss at 2. The Union also requests sanctions against Plaintiff for submitting an allegedly “falsified EEOC right-to-sue letter as one of the exhibits to his Amended Complaint.” Id. at 9.

3 Beraki would not sign the LCA for the following primary reasons: “(1) if he violated any Hotel rules during the 18 months following his reinstatement, he could be immediately discharged; and (2) in that circumstance, Plaintiff, like all employees covered by the CBA, could only challenge the Hotel’s action through the CBA’s mandatory grievance and arbitration procedure.” Am. Compl. Ex. 25 at 160, ECF No. 11.

III. LEGAL STANDARDS

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Beraki v. Crescent Hotels and Resorts Employer of Employees at Ven Embassy Row Hotel, (D.D.C. 2022).

Beraki v. Crescent Hotels and Resorts Employer of Employees at Ven Embassy Row Hotel (Beraki v. Crescent Hotels and Resorts Employer of Employees at Ven Embassy Row Hotel) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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